Blockchain Flashcards
What is block chain
Technology that allows digital information to be distributed but not copied
Each individual piece of data can only have one owner
Added value of blockchain
Registration is cryptographically secured and immutable
Event log of each change (single source of truth)
Cryptographic proof of ownership
Auditability
Secure time stamps
Trade off - what info do you want to share on a public ledger
Block chain challenges
Scalability
Rules and regulations (banned in some countries )
User experience
Cybercrime
Key management
Business case
Risks of blockchain
Technological :
- Threat / loss by hackers
- Crypto storage options insecure
- Transaction validation requires a huge amount of computing power
- Selling to high trx volumes
Market adaptation :
- Poor perception / awareness
- Immense exchange rate volatility
- Concentration / hoarding of wealth
Regulatory :
- Government opposed to crypto currencies
- Poor fit with regulatory framework (and bank on boarding processes )
- Criminal use of crypto currency for money laundering/ blackmail
Creating a blockchain application
Ideation
Proof of value
Proof of concept
Pilot
Production
Ecosystem extension
Interconnectivity
What benefits does blockchain bring
Solves trust by decentralised consensus
Data validation through cryptography
All modes receive the same exact data published in real time
Blockchain historical data impossible to change
Benefits of consortia (working with other firms )
Cost saving
Accelerate learning
Sharing risk
Build critical mass of adoption
Maintaining relevance / life span
Influencing standards
MVP ?
With blockchain you move from minimum viable product to minimal viable ecosystem
Working together
Blockchain are essential business to business workflow tools
Define MVE
Ensure adequate funding, governance and commitment from key players
Opportunity to collectively learn and prepare for implementation and de risk
An opportunity to shape standards and direction for the use of new infrastructure q
Building consortia
1 working group:
- decisions made through consensus as an association
- not a legal entity (each participant owns and operates their own node
- members contribute resources
- each memeber sends a representative to make decisions on its behalf
2 - legal entity
- create a supérate legal entity that owns and develops the platform
- jointly funded by founding members
3 hybrid
- shared infrastructure operator as key facilitator
- members follow organisations directive
Implementing and scaling blockchain is a step by step process
1) consortium (partner with necessary players)
2) technology (navigate through tech changes )
3) operations (designating maintenance responsibilities )
4) talent (get the right people)
5) compliance (follow rules and regs)
6) business impact (understand impact to core business processes )
Deloitte blockchain practise
1 innovation and ideation
2 strategy development
3 prototyping
4 product development
Hash and block hash
Hash- one way fingerprint that allows you to easily prove you are the right owner, but impossible to reconstruct data the other way
Block hash- a hash of the data contained in a block
Ensures that the entire ledger becomes a permanent trusted record
Blockchain is best suited to scenarios where
A shared database
Multiple writers
Absence of trust between parties
Lack of trusted third party acceptable to all
Transaction interaction
An asset backer
